As for the minimum retirement credit, the lowest real value was reached in May 2021, implying an initial fall of 24.5% and a recovery of 9.4% until January 2022 (considering the impact of the bonds, the extreme points: the minimum took place in February 2021, with a fall of 21.3% and the recovery as of January this year is 4.9%).
“On the other hand, in the case of minimum retirement assets (including bonuses), it is observed that 5.6 monthly assets were lost in the reference year, which, taken over the four-year period considered, is equivalent to 11.6% of the consumption capacity” , he pointed.
With this diagnosis, he made a calculation to find out how much retirees should earn to recover lost purchasing power. The minimum retirement amount in January 2022 was $29,062. The minimum credit four years ago, expressed in current prices, is $34,526. “Multiplying this monthly value by the 5.6 assets lost (in the event that compensatory bonds are added) it is obtained that the compensation should be approximately $193,000 in current currency.
workers salary
Another segment within the report is the analysis of the wages of active workers. According to the study, in the last four years registered private sector wages lost against inflation in 30 months (63%), while those in the public sector fell in 33 months (69%), and those in the unregistered private sector in 34 months (71%).
According to the report prepared by the economist Nadin Argañaraz,Considering the four sectors, they received a lower income in terms of purchasing power than the year taken as a base.
When comparing nominal income with inflation, it is observed that the most affected sectors would be informal workers. The latter lost 8.5% of purchasing power on average per year. This is followed by the public sector (6.1% average loss per year) and retirees who receive the minimum amount (5.3% average loss per year). Lastly, formal private workers saw their real income decline at an annual rate of 4.5%.
Registered private salaries reached a floor in January 2021 (a fall of 18.7% compared to the base period) and then recovered 3.6% from that floor until January 2022. For their part, public sector salaries had a fall of 25.3% until May 2021 and recovered 5.8%. And unregistered private sector wages fell 33.4% through September 2021 and then recovered 4.5%.
Argañaraz detailed: “the sThe most affected sector is the non-registered private sector, with a loss of 10 monthly incomes for the year taken as a base. This is equivalent to 20.9% of its consumption capacity throughout the four-year period (10/48 months). Then it is followed by the public sector with a loss of 7.9 monthly income, which is equivalent to 16.4% of its accumulated consumption capacity.
“Since inflation is a symptom, this requires agreeing on the causes to lower it steadily. Otherwise, the loss of purchasing power of workers and retirees will be further accentuated, deepening social deterioration.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
